incorrect disclosure...

[kaje]

What is the name of your state? Nebraska

We just recently signed a purchase agreement (buyer) with several contingencies. We have worked through most of the matters, however, yesterday we were informed by our lender that our new home is located in a floodplain. On the disclosure statement, they marked no. Our realtor was able to check back to the disclosure statement for the previous sale of the house and it was marked no on that form as well.
We were told by our banker that this may have occurred because the house was originally built in 1973 by a family who did not require a loan to build. The next transfer of property was to a bank (foreclosure or death?) about 20 years later. The next owner purchased the property from the bank without the need of a lender, then the current seller assumed their loan.

Question #1- Is this possible?


We have looked up basic information regarding the Flood Insurance Act of 1973, definitions, etc. as well as receiving price quotes from various insurance companies. The river cuts through our property but it has been dry for many years.

Question #2- Is it possible that it may no longer be in a floodplain?

Any other advice before closing on a home in a floodplain?

Thanks,
Kristi

 

[HomeGuru]

What is the name of your state? Nebraska

We just recently signed a purchase agreement (buyer) with several contingencies. We have worked through most of the matters, however, yesterday we were informed by our lender that our new home is located in a floodplain. On the disclosure statement, they marked no. Our realtor was able to check back to the disclosure statement for the previous sale of the house and it was marked no on that form as well.
We were told by our banker that this may have occurred because the house was originally built in 1973 by a family who did not require a loan to build. The next transfer of property was to a bank (foreclosure or death?) about 20 years later. The next owner purchased the property from the bank without the need of a lender, then the current seller assumed their loan.

Question #1- Is this possible?

**A: yes if no one checked the FEMA flood map.
*************

We have looked up basic information regarding the Flood Insurance Act of 1973, definitions, etc. as well as receiving price quotes from various insurance companies. The river cuts through our property but it has been dry for many years.

Question #2- Is it possible that it may no longer be in a floodplain?

**A: yes but keep in mind that lender's require flood insurance even if the property is in a 50 or 100 year flood area. Contact your surveyor, civil engineer, flood insurace agent or FEMA for further information.

Any other advice before closing on a home in a floodplain?

Thanks,
Kristi

 

[kaje]

Thanks! We appreciate the help!

 

[HomeGuru]

You are welcome and good luck.